Ripple Fiber Secures Partnership with Leading Infrastructure Debt Fund to Accelerate Fiber Optic Network Deployment Across the Nation
Ripple Fiber, a Charlotte-based fiber optic internet provider, has formed a partnership with Post Road Group, an alternative investment firm. This collaboration, facilitated by Glass Routes and HyperFiber, aims to expand Ripple Fiber's network to over 400,000 homes by December 2025. Houlihan Lokey acted as the financial advisor, with Platform Investment Partners as a key sponsor. The partnership signifies a shift from equity to debt funding for Ripple Fiber, enhancing their deployment strategies and timelines. Post Road Group supports the initiative, reinforcing its commitment to innovative digital infrastructure investments.
- Ripple Fiber's network will expand to over 400,000 homes by December 2025.
- The partnership with Post Road Group provides significant capital for network deployment.
- Houlihan Lokey, a top technology M&A advisor, is involved as the financial advisor.
- The collaboration facilitates a strategic shift from equity to debt funding.
- Post Road Group's involvement reinforces their commitment to digital infrastructure investments.
- Platform Investment Partners serves as a key sponsor, supporting broadband growth.
- The success of the network expansion relies heavily on the execution of the partnership plan.
- Debt funding introduces financial risk, particularly if revenue projections are not met.
- The fiber optic market is competitive, which may impact Ripple Fiber's market share and profitability.
Insights
The partnership between Ripple Fiber and Post Road Group is significant due to its financial structure and the scale of the project. Moving from equity to debt funding is a strategic decision that reflects Ripple Fiber's confidence in its growth prospects and revenue generation capabilities.
This transition has implications for both short-term liquidity and long-term capital structure. Debt financing can offer tax benefits and immediate capital infusion without diluting ownership. However, it also introduces interest obligations and repayment schedules, which may strain cash flows if not managed effectively.
The goal to expand to over 400,000 homes by December 2025 is ambitious and speaks to the aggressive growth strategy Ripple Fiber is adopting. Investors should consider whether the company’s projected revenue from this expansion can sufficiently cover the new debt obligations. Moreover, the involvement of established advisory firms like Houlihan Lokey provides a layer of credibility and suggests thorough due diligence was conducted.
For retail investors, it’s important to monitor Ripple Fiber’s financial performance over the next few quarters to see if the expansion plans translate into increased revenues and sustainable growth. This partnership could potentially enhance shareholder value if executed effectively.
The fiber optic network market is experiencing rapid growth due to increasing demand for high-speed internet and data services. The partnership with Post Road Group aligns Ripple Fiber well within this overarching industry trend.
The target to pass over 400,000 homes by 2025 is notable. However, the market dynamics should be taken into account, including potential competition from other providers and regulatory considerations. The shift to fiber optics is driven by the need for faster and more reliable internet, which can support emerging technologies like 5G, IoT and smart home devices.
Post Road Group’s investment underscores a belief in the market potential and Ripple Fiber’s strategic positioning. Their focus on digital infrastructure and real estate suggests a comprehensive understanding of the sector, which could help in navigating market challenges and capitalizing on opportunities.
Retail investors should consider the competitive landscape and Ripple Fiber’s ability to capture market share. Monitoring industry trends and technological advancements will be important in assessing the long-term potential of Ripple Fiber’s growth strategy.
Transaction to drive network growth to over 400,000 homes passed by December 2025
“This transaction serves as a critical step as we move from equity to debt funding in the progress of Ripple Fiber’s business model as we aim to rapidly expand across the country,” says Greg Wilson, Founder and CEO of Ripple Fiber. “It also marks a key milestone for this seasoned sponsor grouping as collaborations like these strengthen deployment strategies and timelines, allowing providers to bring future-proof fiber optic technology to more and more residents.”
With a strategic focus in the digital infrastructure, telecommunications, media, and business services industries, Post Road Group is an alternative investment advisory firm based in
“Post Road Group is committed to supporting industry-disrupting initiatives, including those that drive the expansion of fiber optic network deployment. With this partnership, we are investing in a mission we believe in and are confident in the value Ripple Fiber is bringing to communities nationwide,” adds Andy Runk, Managing Director of Post Road Group.
As a top technology M&A advisor, Houlihan Lokey boasts a global reputation for providing superior service and producing outstanding results in capital raising, restructuring, and financial and valuation advisory services. Its team of well-experienced finance professionals serves an extensive range of sectors, including broadcast towers, distributed antenna systems (DAS), in-building wireless, mobile carrier towers, small cells, and utilities/government entities within the infrastructure industry.
“The establishment of this partnership marks a key inflection point in enabling Ripple Fiber’s acceleration in
Partnering with companies in the telecommunications and technology industries, Platform Investment Partners is an investment holding company focused on contributing to the global growth of broadband. The firm identifies business models within specific broadband and software sectors that present opportunities for fundamental change or require high degrees of innovation to effectively serve their customers.
The additional parties involved include Myriad Capital, and KLT Holdings, who are serving as sponsors of the Glass Routes platform.
ABOUT RIPPLE FIBER
Ripple Fiber is the brightest and fastest fiber internet company based in the Southeast, providing thousands of homes with lightning-fast internet connectivity via its powerful fiber optic network and patented software. With community at the forefront of its mission, Ripple Fiber strives to expand digital access for people across the nation. This approach empowers generations to create the futures they want and deserve. Ripple Fiber believes the biggest wave starts as a ripple. Learn more about Ripple Fiber at ripplefiber.com.
ABOUT POST ROAD GROUP
Post Road Group is an alternative investment advisory firm with approximately
ABOUT HOULIHAN LOKEY
Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. The firm serves corporations, institutions, and governments worldwide with offices in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611054729/en/
Emily Adams
Corporate Communications Director
press@ripplefiber.com
Source: Ripple Fiber
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